DEFINITON OF REMITTANCES

According to IOM, migrant remittances are defined broadly as the monetary transfers that a migrant makes to the country of origin. In other words, financial flows associated with migration. Most of the time, remittances are personal, cash transfers from a migrant worker or immigrant to a relative in the country of origin. They can also be funds invested, deposited or donated by the migrant to the country of origin. The definition could possibly be altered to include in-kind personal transfers and donations. Some scholars go further to include transfers of skills and technology as well as “social remittances.” 

In general, three streams of monetary transfers flowing into countries are included in remittances and published annually by the IMF in its Balance of Payments Statistics Yearbook. These are workers remittances, compensation of employees and migrant transfers.

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